Increasing the technologies deployed in your supply chain might be a goal for your organization. Meanwhile, executives that have spent time in the industry can be fearful of how upgrading systems can impact investment strategy and other business goals. However, supply chain technology is continuing to evolve, and it can key to creating competitive advantage, especially for small to medium-sized businesses, asserts Josh Nelson of Supply & Demand Chain Executive. Consider how these technologies can lead to a stronger competitive advantage.
Implementing Supply Chain Technology Aligns Manufacturing With Warehousing Strategy
Supply chains can vary in size and scope, but all have similar functions. Manufacturers produce products, and warehouses store them until ordering. However, manufacturing strategy does not always equal warehouse strategy. However, modern supply chain systems and technology can bring these parts of the supply chain together through data sharing. As a result, overproduction and overstocking is reduced, giving your company more money to spend on improving products or marketing and reducing risk, explains Joseph DeBenedetti of the Houston Chronicle.
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New Technology Promotes Supplier Collaboration With Inbound Routing Guides
Vendors are another issue with warehousing and achieving a competitive advantage. When vendors and suppliers fail to adhere to your inbound routing guide, your costs to obtain each product may increase. As a result, the cost of consumers increases, and consumers will purchase your product from competitors if your prices increase. Essentially, new technologies can be leveraged to ensure suppliers follow using the lowest-cost carriers and modes of transit when sending the stock to your facility.
Increasing Use of Cloud-Based Supply Chain Tech Drives Down Implementation Costs
The development of cloud-based supply chain technology is among the most sophisticated and easy-to-implement benefits of modern technology. Rather than developing entire IT departments to managing your systems, you can take full advantage of the systems your competitors are using through a third-party software-as-a-service (SaaS). Consequently, you can access rates and benefits that were previously held exclusively by the biggest retailers.
New Systems Can Enhance Collaboration Across Supply Chain Partners
Enhanced collaboration goes back to keeping all parts of your supply chain in constant communication. However, newer technologies can enable predictive modeling of the supply chain, preventing your company from investing in new factories, warehouses or distribution centers that do not work to reduce overhead costs. In other words, you can simulate how new facilities will impact costs and profits before acting, reports John T. Mentzer of Industry Week. Therefore, your overall costs decline, increasing your competitive advantage.
The Big Picture
More companies are turning to advanced supply chain technologies to gain a competitive advantage. With the rise of Amazon and the big box retailers, your company cannot afford to avoid these technologies. Ultimately, implementation costs are decreasing, and its benefits to competitive advantage are increasing. So, why wouldn’t you take advantage of new technologies?